Taxes

Cryptocurrency in Business — Taxes, Accounting and Reporting in 2026

May 2, 2026 ~7 min read

Bitcoin, Ethereum and other cryptocurrencies are becoming an increasingly common means of settlement between businesses. However, the Polish tax system has its own specific rules — a mistake can cost tens of thousands of PLN in penalties. Here is how to properly account for cryptocurrency in your business in 2026.

Article illustration — e-commerce and online stores 2026

Legal Status of Cryptocurrency in Poland

Under Polish law, cryptocurrencies are treated as digital assets, NOT as currency. This means:

  • Purchase/sale = a transaction subject to income tax
  • Payment with cryptocurrency for goods/services = a barter exchange, taxed on both sides
  • They are NOT a legal means of payment under Polish law

PIT/CIT — Taxation of Cryptocurrency

For individuals operating a JDG (sole proprietorship):

  • Sale of cryptocurrency = business income (PIT-36 annual return)
  • Purchase cost = tax-deductible expense at the time of sale (FIFO method)
  • Rate: PIT (personal income tax) 19% (flat tax) or progressive scale (12%/32%)

For companies (CIT — corporate income tax):

  • CIT 19% or 9% (small taxpayer)
  • Year-end valuation — at acquisition cost (historical cost), without revaluation to current market value

VAT — When Cryptocurrency Is Subject to It

Sale of cryptocurrency person-to-person (B2C and C2C) — as a rule, exempt from VAT based on the CJEU ruling C-264/14 (Hedqvist).

Exchange of cryptocurrency → goods/services — subject to VAT on the part of the goods/services seller. Cryptocurrency = a form of payment.

Mining — exempt from VAT (no identifiable recipient of the service).

Practical Record-Keeping

Every cryptocurrency transaction requires documentation of:

  • Transaction date
  • Type of cryptocurrency (BTC, ETH, USDT, etc.)
  • Quantity (to 8 decimal places)
  • PLN exchange rate at the time of the transaction (from a crypto exchange or NBP — the National Bank of Poland)
  • PLN value (quantity × rate)
  • Counterparty (if known)

Without this record-keeping, you cannot prove your purchase costs — the tax office will treat the entire sale as income with no deductible costs, resulting in a higher tax liability.

KSeF and Cryptocurrency

From 2026, KSeF (National e-Invoicing System) is mandatory for most businesses. An invoice for a sale paid in cryptocurrency:

  • Must be issued in PLN — the value converted at the exchange rate on the date of issue
  • Payment method: "Other" or "Payment in digital assets"
  • Amount = PLN value at the applicable rate
  • Cryptocurrency payment recorded separately in the accounting books

The invoice is in PLN, not in BTC — the Polish system does not support currencies other than PLN and a few foreign currencies in certain cases.

Frequently Asked Questions

Do I have to report cryptocurrency I am holding long-term?
No, not until you sell it. The value of cryptocurrency in your wallet does not affect your tax liability until a transaction occurs (sale or exchange for goods/services).
How do I report income from DeFi (yield farming, staking)?
Each new token received as a reward = income at PLN value on the date of receipt. A subsequent sale = a second taxable event (the difference between the sale price and the value at the time of receipt).
Are cryptocurrencies tax-deductible business expenses?
Not directly — cryptocurrencies themselves are not a service or product for a typical business. They become a deductible cost only when you sell them at a profit (in which case the deductible expense = the acquisition cost).

Need Assistance?

The Księgowość 365 team — experienced accountants — will handle your bookkeeping and settlements in line with current regulations. First online accounting consultation is free.

Free consultation